Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14265 Articles

Created: 2026/02/02 18:52

Updated: 2026/02/02 18:52

Trader Loses $500K in Hours as Kanye’s Yeezy Coin Crashes

Within hours of trading, the token delivered a brutal lesson in volatility, wiping out half a million dollars from one […] The post Trader Loses $500K in Hours as Kanye’s Yeezy Coin Crashes appeared first on Coindoo.

Author: Coindoo

2025/08/22

DeFi Treasury Protocol ETH Strategy Deploys Over 50% of Its ETH for Yield

The post DeFi Treasury Protocol ETH Strategy Deploys Over 50% of Its ETH for Yield appeared on BitcoinEthereumNews.com. ETH Strategy has deployed a significant portion of its ETH into Etherfi’s weETH token, along with deposits into Lido, Liquid Collective, Renzo, and Aave. ETH Strategy, a DeFi protocol that mimics corporate treasury operations on-chain, is now deploying its ETH into yield-generating positions through a partnership with Etherfi, a non-custodial liquid staking protocol. According to an Aug. 18 blog announcement, allocations to partners like Etherfi are “intended to generate sustainable ETH-denominated returns as part of the ETH Strategy treasury program.” Users will get on-chain receipt tokens for each position, which act as a live, verifiable “proof of reserves,” ETH Strategy explained. ETH Strategy, which has over 11,000 ETH in its treasury, says the integration is “designed to sit alongside other DeFi venues as we roll out additional partners, diversifying sources of yield while preserving liquidity and control.” In practice, this means ETH can be allocated across multiple protocols, earning returns through lending, staking, or other yield mechanisms without locking users’ liquidity. Staking Yield In an X post on Aug. 18, ether.fi said ETH Strategy “will be deploying a significant portion of their ETH holdings into weETH,” a non-rebasing ERC-20 token representing staked Ethereum. While the exact amount wasn’t disclosed, on-chain data shows ETH Strategy has allocated 2,048 ETH to weETH so far, along with smaller deposits to Lido, Liquid Collective, Renzo, and Aave. ETH Deposits ETH Strategy isn’t a company with a traditional off-chain balance sheet. It’s a set of smart contracts running on Ethereum that manage treasury positions autonomously. In its official documentation, ETH Strategy says it has “2 audits completed,” but adds that “these will be public later,” without naming the auditors or providing a timeline. ETH Strategy did not respond to The Defiant’s request for comment. The protocol’s native token STRAT is designed to give leveraged exposure…

Author: BitcoinEthereumNews

2025/08/22

Historical whale moves 400+ BTC to ETH and opens long for $295M

The post Historical whale moves 400+ BTC to ETH and opens long for $295M appeared on BitcoinEthereumNews.com. An “ancient” whale has reactivated a dormant wallet that held 14,837 BTC and converted over 400 BTC to ETH, opening leveraged long positions on Hyperliquid for about $295 million: a move that could heighten the liquidity sensitivity and volatility of ETH. According to the data collected by our on-chain research team and public dashboards, the wallet has been inactive for over a decade with the timestamp of the first transaction recorded in 2013. Trading desk analysts observe that the concentration of positions in a few wallets with leverage between 3x and 10x increases the sensitivity of the derivatives market to short-term shocks; we monitor the tx hash and will update direct references as soon as they are available. What happened: from an old address containing 14,837 BTC – reactivated after over a decade – spot and swap transfers to ETH on Hyperliquid were initiated, followed by a consolidation on the mainnet. Dimensions: about 400 BTC exchanged in ETH (estimated at ~$45.5 million) and, with leverage effect, an aggregated exposure on long positions equal to about 68,130 ETH (indicative value of about $295 million at the prices recorded at the time of the snapshots). Possible short-term impacts: risk of higher liquidations and volatility spikes; the market is also observing the flows of Ethereum ETFs (outflows of about $678 million in three consecutive sessions). Capital rotation from Bitcoin to Ethereum: dimensions and operational nodes. The verified facts: from the dormant wallet to swaps on Hyperliquid According to onchain analysis shared by Onchain Lens, an address that had withdrawn 14,837 BTC over a decade ago has reactivated the funds. In an initial wave of movements, amounting to approximately ~660 BTC in the first 24 hours, a portion of about 400 BTC (estimated at ~$45.5 million) was exchanged for ETH on Hyperliquid, with subsequent…

Author: BitcoinEthereumNews

2025/08/22

Crypto Markets Slip Ahead of Jackson Hole as Fed Minutes Signal Caution

The post Crypto Markets Slip Ahead of Jackson Hole as Fed Minutes Signal Caution appeared on BitcoinEthereumNews.com. Bitcoin, Ethereum, and other major tokens continue weekly declines as investors weigh inflation risks and ETF outflows. Cryptocurrency markets retreated on Thursday, Aug. 21, as investors digested the Federal Reserve’s latest minutes and turned their attention to the Jackson Hole Symposium on Friday, Aug. 22. Bitcoin (BTC) is currently trading at $112,773, marking a modest decline of 0.4% on the day and a nearly 4.7% drop over the past week. Ethereum (ETH) is also down 0.7% in the last 24 hours to $4,242, representing a 7.9% decline over the week. XRP and Solana (SOL) followed a similar trend, with XRP at $2.89, down 0.4% on the day and 7.5% over the week, while SOL has slipped 1.5% in the past 24 hours to $182, losing 6.9% since last week. Overall, the total cryptocurrency market capitalization fell 1% over the past 24 hours to $3.9 trillion, with Bitcoin dominance at 57.5% and Ethereum at 13.1%, according to CoinGecko. Over the past 24 hours, around $228 million in crypto positions were liquidated, including $244 million of long positions and $194 million of shorts, per CoinGlass. Ethereum led with more than $91 million in liquidations, followed by Bitcoin at $34 million. ETFs Spot Bitcoin exchange-traded funds (ETFs) recorded nearly $312 million in net outflows on Wednesday, Aug. 20, the fourth straight day of withdrawals, pushing total outflows over the week to $971 million, according to SoSoValue. Meanwhile, spot ETH ETFs experienced over $240 million in net outflows on Wednesday, a day after recording the second-largest single-day outflow since their launch in July 2024. Total outflows for the week have now reached roughly $926 million. Fed Minutes and Jackson Hole The cautious sentiment came after the Federal Reserve’s July minutes revealed on Aug. 20 that officials remain concerned about inflation and may be reluctant…

Author: BitcoinEthereumNews

2025/08/22

Jupiter Lend readies for public beta launch this week

The post Jupiter Lend readies for public beta launch this week appeared on BitcoinEthereumNews.com. This is a segment from the Lightspeed newsletter. To read full editions, subscribe. The Solana ecosystem revolves heavily around the aptly named Jupiter protocol, and for good reason. They’re an ambitious team trying to do damn near everything in DeFi. In 2021, Jupiter launched a DEX aggregator on Solana, the dominant venue today for routing order flows to DEXs and prop AMMs. Alongside the aggregator, Jupiter founder meow also launched Mercurial DEX, rebranded today as Meteora. A perps DEX followed in 2023, then a memecoin launchpad in 2024, and then a majority stake acquisition in the Moonshot memecoin trading platform earlier this year. There’s also the upcoming omnichain network “JupNet,” which plans to aggregate liquidity across chains. But all eyes this week are on Jupiter Lend, the superapp’s first formal foray into the Lending vertical. Jupiter’s lending product is built on Fluid’s liquidity/risk engine. If you’ve never heard of Fluid, it’s a protocol that took the Ethereum world by storm over the past year. To see the promise of Jupiter Lend requires a baseline understanding of how Fluid actually works. It’s not the most straightforward product, but here’s the gist. Fluid (previously Instadapp) is an integrated application consisting of DEX, lending and borrowing. All three draw from a unified liquidity layer, which enables unique features that just aren’t possible on other DEXs or lending protocols. For instance, a borrower on Fluid can denominate their debt to serve as liquidity for Fluid DEX (what the team calls “smart debt”), rather than letting it sit idle as posted collateral. This, in effect, puts a borrower’s debt to “work.” As traders on the DEX side are paying fees to trade, that lets borrowers earn fees to reduce their debt. It’s somewhat unintuitive, for it inverts the logic of how we commonly think of…

Author: BitcoinEthereumNews

2025/08/22

Bitcoin (BTC) Faces Decline as Derivatives Market Drives Volatility

The post Bitcoin (BTC) Faces Decline as Derivatives Market Drives Volatility appeared on BitcoinEthereumNews.com. Lawrence Jengar Aug 21, 2025 01:32 Bitcoin’s price retraces amid declining capital inflows as derivatives market activity heightens volatility, according to Glassnode. Bitcoin’s recent price activity signals a downturn, as its value retraced from an all-time high (ATH) of $124.4K to a low of $112.9K, marking a 9.2% decline. This price drop comes amid declining capital inflows, suggesting a reduced investor willingness to inject fresh capital at elevated price levels, according to Glassnode. Slowing Capital Inflows Despite reaching a new ATH, Bitcoin’s realized cap increased at a modest rate of 6% per month, significantly lower than the 13% witnessed during previous ATH breakouts. This trend highlights a waning demand from investors, even as profit-taking activities have diminished. Recent price corrections have accelerated investor loss-taking, which reached $112M per day. However, these figures remain typical of local corrections within a bull cycle. Events like the Aug-2024 yen-carry unwind and the ‘Trump Tariff Tantrum’ in March-April 2025 have led to higher capitulation volumes, indicating that investor confidence remains relatively intact. Leverage and Speculation The derivatives market is playing a significant role in Bitcoin’s volatility. Futures contracts’ open interest remains elevated, with $67B highlighting the leverage in play. A recent sell-off saw over $2.3B in open interest unwound, reflecting the market’s speculative nature. Ethereum, known as a bellwether asset, has seen its open interest dominance rise to 43.3%, signaling a shift in risk appetite. Its perpetual futures volume dominance hit a new ATH of 67%, underscoring rising speculative activity. Altcoin Activity Altcoins, such as ETH, SOL, XRP, and DOGE, have also experienced a surge in futures open interest, reaching $60.2B before a $2.6B decline. This fluctuation indicates heightened investor interest, contributing to market fragility. Liquidations in the altcoin market have been substantial, peaking at $303M…

Author: BitcoinEthereumNews

2025/08/22